up the original capital of the company; and in the event of any additional losses, accruing upon new risks taken upon expiration of the period limited by the auditor, in the aforesaid requisition for the filling up of the deficiency in the capital of such company, and before said deficiency shall have been made up, the directors shall be individually liable to the extent thereof.

410. If, upon such examination, it shall appear to the said auditor that the assets of any company chartered upon the plan of mutual insurance under this act are insufficient to justify the continuance of such company in business, it shall be his duty to proceed in relation to such company in the same manner as is herein required in regard to joint stock companies; and the trustees or directors of such company are hereby made personally liable for any losses which may be sustained upon risks taken after the expiration of the period limited by the said auditor for filling up the deficiency in the capital, and before such deficiency shall have been made up; any transfer of the stock of any company organized under this act, made during the pending of any investigation required above, shall not release the party making the transfer from his liability for losses which may have accrued previous to such transfer.

411. The auditor of state shall be authorized to examine into the condition and affairs of any insurance company, as provided for in this act, doing business in this state, not organized under the laws of this state, or cause such examination to be made by some person or persons appointed by him, having no interest in any insurance company; and whenever it shall appear to the satisfaction of said auditor that the affairs of any such company are in an unsound condition, he shall revoke the certificate granted in behalf of such company, and shall cause the notification thereof to be published in some newspaper in general circulation, published at the state capital; and the agent or agents of such company are, after such notice, requested to discontinue the issuing of any new policies, or the renewal of any previously issued.

412. There shall be paid by every company, association, person or persons, agent or agents, to whom this act shall apply, the following fees: For examination and filing of the first application of any company, and issuing of the certificate of license thereon, fifty dollars, which shall go to the auditor; for filing each annual statement herein required, twenty dollars; for each certificate of authority, two dollars; for every copy of paper filed as herein provided, the sum of ten cents per folio, and fifty cents for certifying the same and affixing the seal of office thereto; all of which fees shall be paid to the officer required to perform the duties.

Auditor must account for all fees. State v. Liedtke, 12, 176 (10 N. W., 703). This does not apply to benevolent societies (442). State, ex rel. Royal Arcanum, v. Benton, 35, 463 (53 N. W., 567).

413. Whenever the existing or future laws of any other state of the United States shall require of insurance companies incorporated by or organized under the laws of this state, having agencies in such other state, or of the agents thereof, any deposit of securities in such state, for the protection of policy-holders, or otherwise, or any payment for taxes, fines, penalties, certificates of authority, license-fees, or otherwise greater than the amount required for such purposes, from similar companies of other states, by the then existing laws of this state, then, and in every such case, all companies of states establishing, or having therefore established, an agency or agencies in this state shall be and are hereby required to make the same deposit, for a like purpose, with the auditor of this state, and to pay said auditor for taxes, fines, penalties, certificates of authority, license fees, or otherwise, an amount equal to the amount of such charges and payments imposed upon or required by the laws of such state of the companies of this state, or the agents thereof.

414. It shall be the duty of every insurance company of the kind provided in

this act, doing business in this state, organized under the laws of this state or any other state or country, to publish once, annually, in two newspapers of general circulation, one of which newspapers shall be published at the capital of the state (and in case of companies organized in the state of Nebraska, one of which shall be published in the county where the principal office is located), a certificate from the auditor of state that such company has in all respects complied with the laws of this state relating to insurance.

415. The necessary expenditures of any examination made or ordered to be made by the auditor of the state, under this act, shall be certified to by him and paid on his requisition by the company which is the subject of such examination; Provided, That the auditor of state shall have the power, upon receiving information that the capital of any company is impaired, to call upon any such company for a full statement of its condition, and in event of refusal or neglect of any company to answer the requisition of the auditor as aforesaid, he shall proceed to make the examination required by this act, and to take the necessary action to terminate the business of said company in this state.

416. It shall be the duty of the auditor of state to cause to be prepared and furnished to each of the companies organized under the laws of this state, and to attorneys or agents of companies incorporated by other states and foreign governments, who may apply for the same, printed forms of statements required by this act, and he may from time to time make such changes in the form of these statements as shall seem to him best adapted to elicit from the companies a true exhibit of their condition in respect to the several points herein before enumerated.

417. It shall be the duty of the auditor of state to cause the information contained in the statements required of the companies organized in this state to be arranged in tabular form, and prepare the same in a single document for printing, and submit the same to the legislature as a portion of his regular report to that body.

418. It shall not be lawful for any company organized upon the mutual plan to do business and take risks upon the stock plan, neither for a company organized as a stock company to do business upon the plan of a mutual insurance

company.

419. Nothing in this act shall be so construed as to prevent any number of persons from making mutual pledges and giving valid obligations to each other for their own insurance from loss by fire, lightning, tornadoes, cyclones, wind storms, hail, or death; but such association of persons shall in no case insure any property not owned by one of their number, and no life except that of their own number, nor shall the provisions of this act be applicable to such associations, or companies; Provided, Such associations or companies shall receive no premiums, make no dividends, or pay in any case more than two (2) dollars per day to any of their officers for compensation, and then only when actually employed for the association or company, nor shall they hire any agents or solicitors; Provided further, That no such company or associations shall ever make any levies or collect any money from its members except to pay for losses on property or lives insured, and such expenses as are herein provided for.

Amended 1883, p. 236; 1889, p. 426.

II. STATEMENT TO AUDITOR, ETC.

Secs. 420 to 433 formed secs 1 to 14, ch. 25, R. S. 1866, p. 187.

420. It shall be the duty of each and every insurance company incorporated under the laws of this state to file with the auditor of the state a full and specific

;

statement of the amount of cash paid in upon said stock; the amount of stock not paid for in cash; the amount secured by mortgages or pledges of real estate the names and residences of the stockholders in said company, with the amount of stock owned or held set opposite the name of each, and if not all paid up in cash, the amount unsecured and the amount secured, specifying whether by real or personal security, also set opposite the name of each; the names of all the officers and agents of the company wherever residing; the amount of policies issued by and outstanding against the company, at the date of said report; the amount of premiums received by said company during the preceding six months; the amount of cash on hand; the amount of bills payable and receivable at the date of said statement; the amount of real estate owned by said company, where held and owned, and in what manner said real estate became vested in said company which report and statement shall be verified by the oath of the president and secretary of the company.

421. It shall be the duty of every insurance company now created, or that may hereafter be created, under the laws of this state, to file a semi-annual statement of the affairs of said company, with the auditor of the state, on the first day of January and July in each year, which statement shall be verified by the oath of the secretary of the company. Such statement shall contain: First-The name and locality of the company. Second-The amount of capital stock of said company. Third-The amount of its capital stock paid up. Fourth-The assets of the company, including-I. The amount of cash on hand. II. The amount of cash in hands of agents. III. The real estate unincumbered. IV. The bonds and notes of the company, and how they are secured, with the rates of interest thereon, and whether given in payment of stock subscription, or for bona fide loans. V. Debts of the company secured by mortgage. VI. Debts otherwise secured. VII. Debts for premiums. VIII. All other securities. Fifth-The amount of liabilities due or not due to banks or other creditors by the company. Sixth-Losses adjusted and due. Seventh-Losses adjusted and not due. Eighth-Losses unadjusted. Ninth-Losses in suspense. Tenth-All other claims against the company. Eleventh-The greatest amount insured by any one risk. And the auditor shall cause a brief abstract of such statement to be published in at least one newspaper at the capital of the state, and such company shall pay for said publication.

422. A failure to comply with the provisions of the two preceding sections shall subject the president and secretary of any company, each, individually, to the penalty of one hundred dollars, to be recovered in an action at law in the name any citizen of the state, one-half of the same to the use of the state, and the other moiety to the use of the informer.

of

423. It is declared unlawful for any insurance company in this state to purchase or hold any real estate save what shall be necessary for the transaction of its legitimate business of insurance; and deeds and conveyances to said company any other purposes are hereby declared to be void.

for

424. It shall not be lawful for any agent or agents of any insurance company incorporated by any other state or territory, directly or indirectly, to take risks or transact any business of insurance in this state without first procuring a certificate from the auditor of the state; and before obtaining such certificate, such agent or agents shall furnish the auditor with a statement, under the oath of the president or secretary of the company for which he or they may act, which statement shall show: First-The name and locality of the company. Second-The amount of its capital stock. Third-The amount of its capital stock paid up. Fourth-The assets of the company, including-I. The amount of cash on hand and in the hands of

agents and other persons. II. The real estate unincumbered. III. The lands owned by the company, and how they are secured, with the rate of interest thereon. IV. The debts of the company secured by mortgage. V. Debts otherwise secured. VI. Debts for premiums. VII. All other securities. Fifth-The amount of liabilities due or not due to banks or other creditors by the company. Sixth-Losses adjusted and due. Seventh-Losses adjusted and not due. Eighth-Losses unadjusted. Ninth-Losses in suspense, waiting for further proof. Tenth-All other claims against the company. Eleventh-The greatest amount insured by any one risk. Twelfth-The greatest amount allowed by the rules of the company to be insured in any one city, town, or village. Thirteenth-The greatest amount allowed to be insured in any one block. Fourteenth-The act of incorporation of such company. Which statement shall be filed in the office of said auditor, together with a written instrument under the seal of the company, signed by the president and secretary, authorizing such agent to acknowledge service, consenting that service of process upon such agent shall be taken and held to be as valid as if served upon the company, according to the laws of the state, or any state or territory, and waiving all claims of errors by reason of such service; and no insurance company, or agents of any insurance company, incorporated by any other state or territory, shall transact any business of insurance in this state, unless such company is possessed of at least one hundred thousand dollars of actual capital, invested in stocks of at least par value, or in bonds or mortgages on real estate worth double the amount for which the same is mortgaged; and upon filing the aforesaid statement and instrument with the auditor of the state, and furnishing him with satisfactory evidence of such instrument, as aforesaid, it shall be the duty of said auditor to issue a certificate thereof, with authority to transact business of insurance, to the agent or agents applying for the same; and the auditor may demand and receive two dollars for every such certificate, to be paid by the company.

425. It shall be unlawful for any incorporated company, or association, partnership, firm, or individual, or any member, or agent or agents thereof, or for any agent or agents of any company incorporated by any foreign government, other than a state of this Union, to transact any business of insurance in this state without procuring a certificate of authority from the auditor of this state; such company, association, partnership, firm, or individual, or any agent or agents thereof, having first filed, under oath, in the office of said auditor, a statement setting forth the charter or act of incorporation of any and every such incorporated company, and the by-laws, copartnership agreement, and articles of association of any and every such unincorporated company, association, partnership, or firm, and the name and residence of such individual and the name and residence of the members of every such partnership or firm; and the matters required to be specified by the provisions of this chapter, and the written authority therein mentioned; and furnish evidence, to the satisfaction of the auditor of the state, that said company has invested in stocks of some one or more of the states of this Union, or of the United States, the amount of one hundred thousand dollars, and that such stocks are held by citizens of the United States, or in bonds or mortgages of real estate situated in the United States, fully securing the amount for which the same is mortgaged, or bonds of cities of the United States, the aggregate market value of the investment of the company in which shall not be less than one hundred thousand dollars; and such incorporated company or unincorporated company, association, partnership, firm, or individual, or any agent or agents thereof, filing said statement and furnishing evidence of investment as aforesaid, shall be entitled

to a certificate of authority for such body or individual, in like manner as is provided in this chapter.

Includes life insurance companies. Bankable notes not considered as capital. In re Babcock, 21, 502 (32 N. W., 641). This includes mutual companies. State v. Farmers' Benevolent Association, 18, 276 (25 N. W., 81).

426. The statement and evidences of investment required by this chapter shall be renewed anuually in the month of January of each year. The auditor of the state, upon being satisfied that the capital, securities, and investments remain secure, shall furnish a renewal of certificates as aforesaid; and the company, agent or agents obtaining such certificate shall file the same, together with the statement upon which it was obtained or renewed, in the office of the auditor of state.

427. Any person or firm in this state who shall receive or receipt for any money on account of or for any contract of insurance made by him or them, or for any such insurance company or individual aforesaid, or who shall receive or receipt for money from other persons, to be transmitted to any such company or individual aforesaid, for a policy or policies of insurance or any renewal thereof, although such policy or policies of insurance may not be signed by him or them, as agent or agents of such company, or who shall in anywise, directly or indirectly, make or cause to be made any contract or contracts of insurance, for or on acconnt of such company aforesaid, shall be deemed to all intents and purposes an agent or agents of such company, and shall be subject and liable to all the provisions of this chapter.

428. Copies of all papers required by this chapter to be deposited in the office of the auditor of this state, certified under the hand of such auditor to be true and correct copies of such papers, shall be received as evidence in all courts and places in the same manner and have the same force and effect as the original would have if produced.

429. Any person or persons violating the provisions of this subdivision shall, upon conviction thereof, in any court of competent jurisdiction, be fined in any sum not exceeding one thousand dollars, or imprisoned in the county jail not more than thirty days, or both, at the discretion of the court. Violations of the provisions of this subdivision may be prosecuted by information filed by the prosecuting attorney of the proper county, or by indictment of the grand jury.

430. Any insurance company complying with the provisions of this subdivision, and securing the certificate of the auditor for any of its agents, shall not be required to furnish the single statement, and evidences required hereby for more than one of such agents, which, being filed with the auditor of this state, shall be deemed a sufficient compliance for its free transaction of business in this state.

431. If any insurance company, firm, or individal, or their agent or agents, having filed its or their statement as required by this subdivision, and conformed to the requirements thereof, shall have on deposit in any other state or territory, or elsewhere than in this state, any portion of its capital or earnings as a guarantee fund for the exclusive benefit or security of persons insured in such state or territory, or other place, it shall be the duty of the auditor of the state to withhold from such body or individual, so alienating any such portion of their capital or resources, the certificates and authority in this subdivision provided for, until such body or individual shall file with the auditor of the state a statement, duly verified by the oath or affirmation of the president or secretary of such incorporated company, association, partnership, or firm, or of such individual, showing the amount of premiums received in this state by such company during the year ending on the first of January next preceding the filing of said statement, and shall deposit in this state, in such manner as the auditor of the state shall direct, five per cent of the amount received in money, or any solvent state or United States, stocks of at